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Which is Better for You: Crypto.com vs. Coinbase

by Ana-Maria Sanders   Date Published: Apr 15, 2022

The cryptocurrency market has been gaining momentum, compelling many first-time investors to explore digital currency. The launch of Bitcoin in the late 2000s marked the introduction of decentralized finance and digital assets. Since then, the market has gained traction and has seen an influx of cryptocurrencies. Today, there are over 10,000 digital coins in the market, some of which have generated significant returns for early investors.

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Digital assets can be an attractive investment opportunity for some, as it is deemed relatively safe, backed by a decentralized system and blockchain technology. But where would an interested investor even start?

Exchange platforms like Coinbase and Cryptocurrency.com are great launch pads into the crypto market, where users can view, trade, buy, stake, and manage cryptocurrencies.

If you are reading this article, you are most likely interested in learning which platform is better for you: Coinbase or Crypto.com? It depends on a multitude of factors. This article will explore the different features of Crypto.com vs. Coinbase to help you better understand the platforms and guide your decision-making process.

Coinbase Features

Young adult tracking stocks on computer Coinbase is the older of the two crypto exchange platforms. Founded in 2012, Coinbase has accumulated over 89 million users and ranks among the top exchanges in the world.

The growing popularity of cryptocurrency has prompted individuals to learn more about how they workCoinbase Learn and Earn program caters to this demographic of prospective users by rewarding cryptocurrencies to those willing to learn. Read informative text slides and answer quiz questions to get free cryptocurrency, such as AMPs, XLMs, SKLs, and GRTs.

Coinbase also offers an intuitive user platform on its mobile app and website, appealing to first-time crypto-exchange users. Additionally, the integration of news articles on Coinbase furthers users' learning journeys. Articles come from various sources, such as Bloomberg, Decrypt, and CoinDesk. The crypto market is heavily influenced by market supply and demand, so it can be beneficial for investors to stay up to date with the news. This feature provides a centralized hub for new and experienced crypto investors to make informed trading decisions influenced by relevant information.

Additionally, Coinbase offers a variety of features to help users manage and transact digital assets. Here are some of the many features:

  • Coinbase Card is a debit card associated with a cardholder’s Coinbase portfolio. The card converts crypto assets to U.S. Dollars, making it feasible to spend cryptocurrencies in everyday business transactions and make ATM withdrawals. Also, cardholders can earn up to 4% back in crypto rewards when using the card. The Coinbase card has no setup or annual fees, but other fees may apply. The Coinbase Card is an easy way to spend intangible assets to purchase tangible things practically. Those interested in a Coinbase Card will have to register on the waitlist.
  • Coinbase One is a subscription-based product that provides additional perks for subscribers. These benefits include waived trading fees and priority access to 24/7 customer service all year long. In addition, reimbursement valued up to $1,000,000 is covered if the Coinbase system ever gets compromised. Unfortunately, Coinbase One is not available to all users, but eligible users are notified via email and can try a 30-day free beta trial.
  • Coinbase Wallet allows users to manage and store their private keys on a self-custody wallet. Private keys dictate ownership of crypto funds and allow users access to their funds. Coinbase Wallet is a standalone app that does not require users to have a Coinbase account. However, Coinbase Wallet can integrate easily with a Coinbase account for seamless data flow.

Businesses and institutions can benefit from Coinbase as well. Coinbase offers a variety of solutions catered to experienced and institutional investors. For example, Coinbase Prime features help businesses optimize execution strategies, provide detailed insight on trade performances, and track real-time market data.

With this knowledge, you might be asking if Coinbase is better than Crypto.com. However, it’s too soon to say. So, let’s explore Crypto.com and all its features before making your final decision.

Pros and Cons of Coinbase

Pros Cons

Free $10 in Bitcoin when referring a friend

The fee structure can be complicated

USD Wallet and Hosted Cryptocurrency Wallet service

Coinbase takes a 25% commission when using a third-party staking service

Direct deposit enrollment will waive Coinbase trading fees

 

Crypto.com Features
Close up on cryptocurrency platform on cellphone

Unlike Coinbase, Crypto.com’s forum is only available through the mobile app. Crypto.com Exchange.

The app also offers interactive missions, varying from buying crypto to reading articles on Crypto.com University. Diamond points are awarded upon completion of each task. Points collected can be used to purchase prizes, such as Mystery Boxes, Paris Saint-Germain F.C. jerseys, and game tickets.

Cronos (CRO), previously referred to as Crypto.com coins, are crypto tokens native to the Crypto.com exchange. The company offers many perks and benefits, especially for those who stake Cronos. Here are some of those features:

  • Crypto.com Visa Card allows cardholders who stake CRO to exchange their crypto for fiat money. Staking refers to storing crypto on an exchange to incur defined benefits. With staked CRO, Visa cardholders benefit from an 8% return on CRO Rewards, airport lounge access, and free ATM withdrawal. Monthly reimbursement for platforms like Netflix, Amazon Prime, and Airbnb may also be included. Benefits are contingent on the card tier. Those interested in a card must stake CRO tokens for 180 days to be eligible to apply for a card.
  • Crypto.com Pay offers cashback in CRO when CRO is used on the app as the payment method. Users can get rewarded for sending CRO to friends. Purchase gift cards or shop at online retailers that offer Crypto.com Pay to earn additional rewards. The amount of CRO cashback varies depending on the category and amount staked.
  • DeFi Wallet is a non-custodial wallet that gives access to a decentralized services hub. Use the wallet to store crypto keys, earn interest, send crypto, and farm DeFi tokens.

Pros and Cons of Crypto.com

Pros Cons

Many perks and benefits for staked CRO

Exchange is accessible through the mobile app

Cryptocurrency purchase fees on the app are waived for the first 30 days

Generally higher fees for those who don't stake CRO

Offers financial services 

 

Deposit Fees 

Now let’s explore Crypto.com fees vs. Coinbase fees. On Coinbase, users can deposit fiat currency to purchase crypto or pay upon purchasing. Bank transfers are free, but a $10 fee is included with wire transfers. Crypto.com, on the other hand, does not charge a deposit fee for fiat currency and cryptocurrencies.

Coinbase and Crypto.com offer many of the same deposit methods, including credit, debit, and PayPal. Coinbase is also compatible with Apple Pay and Google Pay. However, it is important to note that deposit fees vary on the method used.

Trading Fees 

Trading fees can be considered more complex depending on the exchange. With Coinbase, there is a spread fee attached to buy, sell, or convert cryptos. A spread fee on Coinbase is about 0.50% of the actual cost of the crypto. Amount totals may vary, but transaction breakdowns are shown to users before purchase. In addition to a spread fee, a flat or variable fee is added. These additional fees are contingent on different factors, such as the amount purchased and payment method.

Crypto.com trading fees correlate with the amount being traded. As a result, higher trading volumes have relatively lower percentage trading fees compared to lower volumes.

Crypto.com vs. Coinbase Security

Team meeting discussing crypto platform securityCybersecurity is crucial in the digitalized cryptocurrency market. The blockchain technology that powers cryptocurrency makes these digital assets relatively safe but not wholly spared from hackers. Therefore, Crypto.com and Coinbase have taken initiatives to provide security to create a safer trading and crypto management experience for their users.

Both platforms require identity verification with either a driver’s license or identification card. However, Crypto.com takes it one step further and requires new users to upload a selfie photo with their identification card and a specified hand-written note. Crypto.com will only grant new users access to the app after the identification process has been completed. Conversely, Coinbase allows users to create an account and access the app before completing this verification.

Additionally, Coinbase stores 98% of funds offline in cold storage worldwide. Cold storage makes it harder for online hackers to access the data. Coinbase utilizes USD Wallet and Hosted Cryptocurrency Wallet services on its exchange, using industry-best encryption practices. Additionally, the Coinbase app offers integrations with self-custody wallets, such as the Coinbase Wallet app, which gives investors alternative security protection for their assets. Biometric authentication and two-factor authentication are implemented for safer user login.

Moreover, Coinbase requires all employees to undergo and pass criminal background checks. Each employee is also expected to have their hard drives encrypted and utilize two-step verification on different devices.

Similarly, Crypto.com stores 100% of user funds in cold wallets. Insurance is provided for funds in offline storage and during the unlikely event of a Crypto.com system breach. The security measures Crypto.com has implemented contribute to its recognition as the first cryptocurrency company to achieve ISO/IEC 27701:2019, a privacy risk management certification. The company underwent extensive auditing for its data governance model and information security to earn this recognition.

Sum Up

Crypto.com vs. Coinbase is a common debate due to the popularity and similarity of each platform. However, Coinbase and Crypto.com have distinct features and different fee structures and security measures that make the platforms unique.

The account registration process for Crypto.com and Coinbase is free, so don’t limit yourself to exploring one platform. It is not uncommon for people to use multiple platforms to manage their various digital assets and transactions to meet their different needs. 

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Ana-Maria Sanders, author at OpenLoans
Financial Analyst
Ana-Maria Sanders writes about consumer and business finance. She has been featured on Business.com, CreditCards.com, FOX News, and FOX 29.
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